Re:Can the Fed raise interest rates?
by irln on Wednesday September 16, 2015 @03:36PM
(#10229220)
Some have argued that the reserves no longer exist in practical terms. [1]
[1] http://www.ny.frb.org/research/epr/02v08n1/0205benn/0205benn...
tl;dr "They attribute the diminished force of the requirements largely to the spread of "sweep" arrangements—a banking innovation that allows depository institutions to shift funds out of customer accounts subject to reserve requirements."
[1] http://www.ny.frb.org/research/epr/02v08n1/0205benn/0205benn... tl;dr "They attribute the diminished force of the requirements largely to the spread of "sweep" arrangements—a banking innovation that allows depository institutions to shift funds out of customer accounts subject to reserve requirements."